PSC Comments on GASB Exposure Draft, Infrastructure Assets - An Amendment of GASB Statement No. 34

The PSC supports GASB’s goal to improve infrastructure reporting but raised concerns about some proposed disclosures. They said clear explanations are needed and expressed that a 10‑year maintenance schedule would create an unnecessary burden.

TXCPA's Professional Standards Committee provided comments on GASB’s Exposure Draft, Infrastructure Assets - An Amendment of GASB Statement No. 34. While the PSC supports the project’s objective of improving consistency in infrastructure asset reporting and enhancing the usefulness of financial statements, it reiterates several concerns previously raised in response to the Preliminary View issued in 2024.

The PSC believes the modified approach remains a unique and significant aspect of governmental accounting and that a clear description of the approach should continue to be included in the summary of significant accounting policies. Such disclosure is essential to helping the wide range of financial statement users understand the reporting of infrastructure assets and make informed economic, social and political decisions.

The PSC also questions the proposed requirement to disclose infrastructure assets that have exceeded 80% of their estimated useful lives, noting that the threshold appears arbitrary and may not provide information that is truly essential to users. Additionally, the PSC believes requiring a 10-year schedule comparing estimated and actual maintenance expenses would be unnecessarily burdensome for governments. While GASB contends that a 10-year presentation provides historical context and trend information, the PSC respectfully disagrees that the benefits outweigh the reporting burden.

Learn more here. Read the Exposure Draft here. View TXCPA PSC comment letter here. View TXCPA PSC comment letter on the Preliminary View (PV), Infrastructure Assets here.

Topics: